Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the year ended December 31, 2013, three of Actua’s consolidated subsidiaries were sold: (1) InvestorForce, (2) Channel Intelligence, and (3) Procurian.  These businesses were a part of the vertical cloud reporting segment. Actua did not sell any subsidiaries during 2014 but did receive escrow proceeds associated with the 2013 sales, as described in the paragraphs below.

On January 29, 2013, InvestorForce was sold to MSCI for $23.6 million in cash. Actua’s proceeds from the sale were $20.8 million, a portion of which was held in escrow, subject to potential indemnification claims. Actua recorded a net of tax gain of $15.7 million related to the transaction; that gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” on Actua’s Consolidated Statements of Operations for the year ended December 31, 2013. During the year ended December 31, 2014, Actua recognized a net of tax gain of $2.1 million related to the release of escrowed proceeds from the sale of InvestorForce. That gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” in Actua’s Consolidated Statements of Operations for the year ended December 31, 2014.

On February 20, 2013, Channel Intelligence was sold to Google for $125.0 million in cash. Actua realized $60.5 million in the transaction, a portion of which was held in escrow, subject to potential indemnification claims. Actua recorded a net of tax gain of $17.8 million related to the transaction; that gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” on Actua’s Consolidated Statements of Operations for the year ended December 31, 2013.  During the year ended December 31, 2014, Actua recognized a net of tax gain of $5.8 million related to the release of escrow proceeds from the sale of Channel Intelligence. That gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” in Actua’s Consolidated Statement of Operations for the year ended December 31, 2014.

On December 4, 2013, Procurian was sold to an affiliate of Accenture for $375.0 million in cash. Actua realized $327.8 million in the transaction, a portion of which was held in escrow, subject to potential indemnification claims. Actua recorded a net of tax gain of $224.9 million related to the transaction; that gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” on Actua’s Consolidated Statements of Operations for the year ended December 31, 2013.  During the year ended December 31, 2014, Actua recognized a net of tax gain of $16.2 million related to the release of escrow proceeds from the sale of Procurian. That gain is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” in Actua’s Consolidated Statement of Operations for the year ended December 31, 2014.

InvestorForce, Channel Intelligence and Procurian have been accounted for as discontinued operations. The results of operations and cash flows of these businesses have been reclassified from the results of continuing operations and are shown separately on Actua’s Consolidated Statements of Operations and Actua’s Consolidated Statements of Cash Flows for all relevant periods presented. Consistent with Actua’s policy election, Actua’s proceeds from these transactions are reflected in cash flows provided by investing activities from continuing operations on Actua’s Consolidated Statement of Cash Flows for the year ended December 31, 2013. The results of Actua’s discontinued operations are summarized below:

(in thousands)	InvestorForce			Channel Intelligence			Procurian
Year ended December 31, 2013
Revenue (through date of respective sale)	$	800		$	3,100		$	127,100
Actua Corporation’s share of net income (loss) (through date of respective sale)	$	(500	)	$	(2,900	)	$	100

Income tax expense of $10.1 million and income tax expense of $20.4 million is included in the line item “Income (loss) from discontinued operations, including gain on sale, net of tax” on Actua’s Consolidated Statements of Operations for the years ended December 31, 2014, and 2013, respectively.

During the year ended December 31, 2014, Actua recognized a loss of $1.2 million which also included in the 2014 amount noted above related to the payment of Procurian’s 2013 federal consolidated tax return.